Local currency financing to improve water infrastructure in Dambovita, Romania

With the financial support of the EBRD over 170,000 residents of Romania’s most densely populated county – Dambovita – will gain access to clean water and a modern water supply and wastewater service.

The Bank is providing a €13.4 million equivalent loan to Compania de Apa Targoviste-Dambovita to upgrade and expand its water services in Dambovita. The loan is part of the Bank’s €200 million Regional EU Cohesion Fund Water Co-Financing Framework (R2CF) and is the first financing under this framework extended in Romanian lei.

The EBRD funds will be used to finance much-needed upgrades to the water infrastructure in Dambovita, and includes the rehabilitation and extension of six existing wastewater treatment plants, as well as the construction and modernisation of 120 kilometres of the sewerage network and 80 kilometres of the water supply system.

The EBRD investment is complemented by technical cooperation support provided by the Spanish government and the Bank’s Shareholder Special Fund.

“This investment will bring considerable improvements to water and wastewater services in Dambovita county and important health benefits to its residents. This is the EBRD’s fifth investment alongside EU cohesion funds in upgrading water services in Romania, following similar projects in Constanţa, Iaşi, Buzau and Braşov,” said Jean-Patrick Marquet, Director of the Municipal and Environmental Infrastructure team at the EBRD.

“This is an important project for Dambovita and we are delighted to continue our cooperation with the EBRD in order to improve water supply and wastewater services in Dambovita county,” said Radu Vasilescu, Director, Compania de Apa Targoviste-Dambovita.

The R2CF was launched in 2010 to support critical investments in Romania’s water and wastewater infrastructure and is aimed at helping local utilities to bring their services up to EU environmental standards. Under the framework, the EBRD provides financing to water utilities alongside EU cohesion funds. It is estimated that the framework will mobilise additional investments of close to €1.5 billion in Romania’s water and wastewater infrastructure.

Since the beginning of its operations in Romania, the EBRD has committed over €5 billion to various sectors of the country’s economy.